JAKARTA – The palm oil industry has become one of the main engines of Indonesian economic growth, especially during the ongoing Covid-19 pandemic. But despite its steady growth, it is also facing a big challenge of sustainability amid the rising global awareness on the green economic principles.
“While having the big potential to grow, the Indonesian palm oil industry is also facing a big challenge on the issue of sustainability,” the Institute for Development of Economics and Finance (INDEF) Senior Economist Fadhil Hasan told participants of a webinar on Indonesian palm oil industry and sustainability challenges on Wednesday, 04 August 2021.
Fadhil noted that during the last decade the Indonesian palm oil industry has seen a significant transformation. “For example, in the downstream sector, it has also driven up the industries of foods, oleo-chemical, and biofuel to support the transportation sector. I’m optimistic that with a strong commitment to implement the sustainability principles, Indonesian palm oil industry will continue to grow. It can be implemented well if all stakeholders are united to strengthen their synergy,” he said.
RGE Indonesia Palm Business and Sustainability Director Bernard A. Riedom said that the current big challenge facing palm oil industry is the issue of sustainability, which should not be only driven by commitment to meet the global market demand, but also by companies’ own commitment to care about the principles of 5C, namely Climate, Country, Community, Customer, and Company.
“So, sustainability is a must in the production process of palm oil. Only by complying with the sustainability principles, Indonesia can become the top global supplier of top quality palm oil to the world class big companies,” said Bernard.
Apical Group Sustainability Director Bremen Young said that the much higher competitiveness of palm oil compared to other vegetable oils has led to an increasingly higher demand for sustainability from the global market, governments, and environmentalists. “Therefore, there is a need for an approach methodology to support transparency and traceability of palm oil supply,” he said.
“Through the methodology, it can be ensured from which plantations the palm oil supply is originated, whether the plantations comply with the sustainability principles or not through the protection of conservation areas and peat lands, and whether they positively contribute to the local people living around their operational areas,” he asserted. (*)
Source: KOMPAS.com | Featured image via Yanmar.com
